A Study On The Performances Of Divestiture Actions With Different Motivations

Divestiture is only a contraction of the capital operation mode,but also an important form of asset restructuring.As an important corporate strategy,it has a profound impact on the future business performance.Since China introduced divestiture from 1984,the number and size of divestiture are on the rise every year.From 2007,under the dual pressure of the international financial crisis and the domestic economic transformation and upgrading,the number and scale of the assets of listed companies reached the most in history.Therefore,it is necessary for us to understand the manufacturing listed company asset stripping process.The purpose of this paper is based on the summary and theoretical research on the establishment of divestiture performance of listed manufacturing companies of the evaluation system,the sample data selected from the divestiture of listed manufacturing companies in 2008-2011 stripping events,using the factor analysis method to construct the comprehensive performance score model for five years before and after stripping the enterprises,and according to different causes,different asset stripping behavior behavior,different motivation three classification criteria using nonn parametric test methods of stripping the performance difference between the performance verification of all kinds of stripping classification criteria,To explore the motive of divestiture on what kind of asset stripping,enterprises are more likely to have positive stripping performance and enterprise take the divestitures.What is more likely to get positive stripping performance.Through the empirical study obtained three main conclusions:Firestly,the empirical results show that the whole manufacturing industry listed company after the enterprise performance has not improved significantly than before divestiture,but found that the different motivations have different divestiture performance:under the stragctic motivation such as in order to focus the main industry,eliminating the negative synergistic effect,meeting the changed economic environment,enterprises can obtain a positive significant long-term divestiture performance;under the tactical motivation such as in order to make an inventory of assets obtain cash flow,improving asset management efficiency and the rate of return on investment,enterprises can obtain positive and significant long and short period divestiture performance;under the pressure of motivation,such as in order to reduce the debt burden,geting rid of financial distress,improving the company’s financial situation,enterprises can obtain short-term positive significant divestiture performance.Secondy,from the different divestiture behavior,find whether to take the same jurisdiction transactions of the divestiture behavior,the length of the corporate divestiture performance is not significant.but whether to take related party transactions for divestiture,enterprises can obtain different divestiture performance.Taking non related party transaction to divestiture,enterprises can obtain positive and significant divestiture performance,the short-term divestiture performance did not pass the test of significance,but the descriptive statistics shows positive change.Taking related party transaction to divestiture,the length of the corporate divestiture performance is not significant.Firdly,different ways of divestiture are taken under different motivation,and the difference of the performance of the enterprise is found.under the stragetic motivation such as in order to focus the main industry,eliminating the negative synergistic effect,meeting the changed economic environment,enterprises don’t take related party transactions to divestiture can obtain positive and significant long-term and short-term divestiture performance,however,taking related transactions to divestiture no significant long-term positive divestiture performance;under the tactical motivation such as in order to make an inventory of assets obtain cash flow,improving asset management efficiency and the rate of return on investment,enterprises take non related party transactions to divestiture can obtain positive and significant long-term and short-term divestiture performance,however,taking related transactions to divestiture has no positive and significant divestiture performance.under the pressure of motivation,such as in order to reduce the debt burden,geting rid of financial distress,improving the company’s financial situation,enterprises take non related party transactions to divestiture obtion unsignifiant positive divestiture performance,but,taking related transactions to divestiture obtion signifiant positive short-term divestiture performance.Whether to belong to the jurisdiction,only under the pressure of motivation,the divestiture performance existenced difference,presented as:short-term divestiture performance is positive and significant,But it is not sustainable in the long run.Finally,aiming at the problems of China’s manufacturing industry enterprises in the divestiture of blindness,related party transactions and government intervention,from the three aspects of enterprise,government functions and institutional environment puts forward countermeasures to improve the stripping performance of manufacturing listed companies in China.